Home Buying in 77084>Question Details

Rachel Vacek, Home Buyer in 77095

There are so many banks and mortgage lenders out there. Everyone wants my business. How do I determine which one is best for me?

Asked by Rachel Vacek, 77095 Sun Sep 23, 2012

Help the community by answering this question:


Hello Vacekrae,
You are right, everyone wants your business! it's like going to the city animal shelter and all the doggies are barking for your attention. The same has been said of real estate professionals. It's hard not to take the all home, but, only one per customer.
There are several elements you MUST consider.
#1. Your market segment. For low cap and high cap mortgages there are special challenges that your agent must anticipate and be prepared to negate. Working with a lender your agent trusts who has a history of closing on time and under budget is essential with these real estate purchases. Very often, the lenders you agent may recommend will have differing requirements, such as, for instance, portfolio loans, that will prove more beneficial to you. Your situation will dictate the best option. Similar complexities exist with the low cap market where the specific real estate will determine the best lender.

#2. Competition in the real estate market. Some lenders may have a history of creating confrontation that will compel the seller to say, "Next." In this conforming loan environment, the lender can and frequently does place obstacles to success. If a sale does not occur, you want it to be your choice, not a third parties.

#3. Communication and execution. The lender with whom you work needs to provide you decision making commitments well before closing. Most will present the borrower a work sheet and offer the GFE two days before closing and leave the buyer and seller in a real difficult situation. Again, your agent will know who can be relied on and who should be avoided at all costs, such as Never Ever Bank of Clearwater FL.
Finally, I know people don't like to be so reliant on a single source, such as their real estate consultant, so here is another option. Choose a lender who has a history of investing in the local economy through small business loans and home mortgages. You will find these lenders are NOT, Bank of America, Chase, Wells Fargo, or Citi bank, who are all "F" graded lenders.
Enter your zip code or city and identify an "A" or "B" graded local lender.
Don't overlook Lawanda's advise and check out those credit unions. They are, hands down, the lowest cost lenders and will not appear on the http://www.BankingGrades.com list.
In the end, the right lender for you is the one who can help you achieve your goals on time, on budget and with minimal stress.......if those are important to you.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
3 votes Thank Flag Link Tue Sep 25, 2012
Hello Vacekrae,
YES! EVERYONE wants your business. However, I usually advise my clients to check w/at least 3 lenders, one of which should be your own bank or credit union that you do business with as you may be entitled to a better interest rate or better package with little orgination or none at all.
1 vote Thank Flag Link Wed Sep 26, 2012
Credit Unions are great and competitive and offer incentives to their clients.
1 vote Thank Flag Link Mon Sep 24, 2012
Hi Vacekrae,

It's a little daunting isn't it? It should boil down to just a couple of things.

1) Service. You want to find a lender who's going to take the time required to educate you about the mortgage process and what programs are available to you so you can make an informed decision about which program is the best fit for you, not the lender. For example: Part of Katy is eligible for the no money down USDA mortgage. This program has several other unique benefits, like the ability to roll your closing costs into the loan and the monthly mortgage insurance is substantially cheaper than an FHA mortgage.

2) Closing costs. You're trying to find great service at a reasonable cost.

3) Interest rate. You want a great rate since you're the one making the 30 year commitment, right?

So why is service #1 and not the interest rate? You'll just have to trust me on this one but when you're taking on arguably the largest purchase and investment of your life, you're gonna want excellent service through out the process.

Please feel free to contact me for more information or help. You can also find info on my USDA Mortgage website by clicking the link below.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust
1 vote Thank Flag Link Mon Sep 24, 2012
Hello and Good afternoon. Choosing mortgage lenders, realtors or for that matter any service provider is frustrating because you don't know who they are. Precisely for that reason, as my peers have mentioned, check with your realtor first - they know how each lender operates and how comparable their services are based on how efficient and creative they are while working with the clients. Your friends, relatives and coworkers can suggest names as well.

I suggest calling some that have been recommended and see how they interact with you and how quickly and efficiently they send you information that you ask for. Also check how well they explain the process and convey information about fees, interest rates etc. Once you get a preliminary quote, call and ask questions again - you'll be surprised how much you can learn about the loan itself as well as the individual you will potentially do business with. There is a lot that needs to be processed for closing, and if your loan officer is efficient, they will be able to coordinate with the Title Company and you can close on time.

Good Luck with your home buying. Feel free to contact me if you have further questions or need a referral.

1 vote Thank Flag Link Sun Sep 23, 2012
Good afternoon, my suggestion would be for you to contact first the lender your Realtor recommends. Once that lender qualifies you and provides you with a good faith estimate, you are still able to shop that around and confirm that you are getting the most competitive rate and terms without having your credit pulled again. Regards, Toke
1 vote Thank Flag Link Sun Sep 23, 2012
Picking a Mortgage Lender is tricky business. Tom's suggestion is a good one - your Realtor will be able to steer you towards a good lender in your area.

There are 3 types of lenders - banks, brokers & correspondent lenders - each offering different in-house services and levels of personalized customer service. Our best advice is to work with a knowledgable Realtor you trust - they can help you decide what's best for you and put you in touch with a good lender who can walk you through the lending process.

The Loken Group
281- 861- 4624
1 vote Thank Flag Link Sun Sep 23, 2012
Talk to your realtor.
They know the good ones and the bad ones.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
1 vote Thank Flag Link Sun Sep 23, 2012
It usually boils down to 3 things that are not always listed in the advertising:

1. Communication - You want a company that will communicate with you regularly (i.e. return calls), and answer your questions with clarity.

2. Customer Service - A company that has honesty, integrity, and puts the clients first is of upmost importance. This can be hard to decifer by a website or a single conversation, so visit their office or ask your Realtor their recommendations.

3. Experience - The real estate and lending fields can be overwhelming to a first time agent or lender. The more experience they have the more fires they've battled, and the more likely they'll be able to find the right answers or know someone who does. This can make a difference in time sensative transations where your money or home of your dream is on the line.

Nasyim Segal, Broker Associate
0 votes Thank Flag Link Wed Mar 27, 2013
I always sugguest doing a brief interview via email or phone. This way you can filter who knows what and who is best for you. Usually your agent will have someone that they are working with and have a history of transactions with to give you a inside opinion of the lender.
0 votes Thank Flag Link Mon Mar 25, 2013
Give us a call over a Newbridge Home Loans, we can assist with all your financing needs, we just closed a loan in Katy for a Foreign National so we have a variety of products. We are a mortgage company so you are not stuck with just one financing option.

John Broussard
Newbridge Home Loans
Account Manage
713-777-9996 Ext 103
0 votes Thank Flag Link Tue Sep 25, 2012
Ask your realtor....or ask a title company.
Ask them which ones ALWAYS close on time and have the lowest fees.
You can also ask them who are the easiest ones to work with.

They'll be happy to share that with you.

If you call me I can tell you my favorite.
0 votes Thank Flag Link Sun Sep 23, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX

I know sometimes it can seem overwhelming. There are a lot of lenders out there as you know. I am not only a Realtor but also a mortgage broker. You have a lot of options ranging from direct retail lenders like Wells Fargo or Bank of America. Their rates will be higher than those of a mortgage broker like myself. This really comes down to overhead. Sure the banks could give their customers better rates and lower fees but they do not choose to do so at the retail level.

As a Wholesale Broker I am able to get my clients much lower fees and rates than any retail lender can offer you. This is not true with all brokers because they may be set up to charge and make more on each loan they offer. So you should really speak with several different mortgage brokers or bankers to see not only can get you the best deal but who you have confidence can get your loan done in a timely manner.

Here is what I recommend. Assuming your credit is good only have one potential lender pull your credit. The last thing you want is to have multiple credit pulls. While mortgage company credit inquiries are grouped together to count as one credit pull withing a 30 day window I still recommend against it. The less people who know your personal information the better. If you already know your credit scores you can give that information to potential lenders and get an idea of what they can offer you.

From there you can speak with the individuals and see which one has the best combination of rate and fees along with the one you feel the most comfortable with.

The advantages of working with a "good" broker are many. Besides generally being able to get you the very best deal out there they also have relationships with several lenders. So if you happen to fall into an out of the box situation they can most likely find a solution for you because they have so many more options.

Best of luck to you with your home purchase.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Sun Sep 23, 2012
Another idea would be to talk to friends/family/coworkers/CPAs/ect

Ask who they have used and if they were happy.

And I like Jon's answer. LOL ;-)

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Sun Sep 23, 2012
Find a local mortgage broker. They don't get paid until your loan closes. Ask your Realtor for recommendations, ask your friends. I have heard stories about the big banks taking 60 days or more to close. DON't go online and email someone out of state and expect to get quick service on loan processing. I've got 2 people I recommend. Message me if you want the info.
0 votes Thank Flag Link Sun Sep 23, 2012
I like Toms answer.. Give him a shot!
0 votes Thank Flag Link Sun Sep 23, 2012
Try to research all or most of them. See who has the best interest rates and who will offer you the best deal. Make sure they are really trying to help you and not themselves.
0 votes Thank Flag Link Sun Sep 23, 2012
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